Twitter founder’s startup Square moves into small business loans
TWITTER founder Jack Dorsey is expanding his mobile payments startup, Square, to help small businesses with personalised lending with repayments that adjust based on a firm’s cashflow.
Square’s hope is that by using the vast volumes of data it already has on the merchants who use it, Square will be able to offer unique loans to businesses that will be repaid in approximately 10 months.
The move looks set to transform Square from a pure payments provider into a business with a wider offering of services for smaller merchants.
“Businesses automatically pay Square as a set percentage of daily card sales, so they pay more when sales are strong and less if things slow down,” Square said. The service is currently being piloted by over 1,000 US small businesses.